The Royal Bank of Scotland maintained the holding rating of Asia Cement (China) (0743.HK) and lowered the target price from HK$5.4 to HK$5. Previously, it lowered the company's expected earnings in 2010 by 18% due to a more cautious view of the Sichuan market. The Royal Bank of Scotland said it is uncertain about the company's earnings prospects due to the company's plans to significantly increase production capacity in Sichuan in 2010 and also anticipate a 10% drop in cement prices in the region. However, given that the company's business remains stable and is also expected to be a target acquisition, Royal Bank of Scotland believes that the stock's valuation will be strongly supported. The new target price is 20% off the historical average. The stock closed down 0.87% yesterday to HK$4.57.